Buy gold is the call of HSBC
technical analysts who are becoming increasingly bullish on gold and
increasingly bearish on stocks as reported by Business Insider.
HSBC via Business Insider via Bloomberg
Sentiment towards gold is slowly moving from being extremely negative and
bearish to more bullish. HSBC joins a long list of large banks, insurers and
investment houses who are now bullish on gold.
HSBC, JP Morgan Chase, Bank of America Merrill Lynch, ABN Amro, UBS,
Deutsche Bank, PIMCO and BlackRock head a growing number of investment
houses that are recommending an allocation to gold
today. Indeed, the world’s largest reinsurer Munich Re is buying
gold.
HSBC’s bullish gold call was reported by Business Insider:
“The US dollar price of Gold is in an uptrend with a bullish Elliott
Wave structure,” said Murray Gunn, HSBC’s head of technical analysis.
“With momentum turning up we open a long position at a spot reference
of $1,260. A stop-loss is set at $1,200 with an initial target of $1,500.”
Gold was trading at around $1,261 an ounce on Tuesday morning.
Gunn’s analysis is formulated based on something called the Elliott
Principle, a form of technical analysis that believes investors move between
periods of bullish and bearish thinking in a reasonably consistent pattern.
Or as HSBC puts it:
Elliott’s Wave Principle is based on his empirically derived discovery
in the 1930s that market prices move in recognizable, repeating patterns and
that these patterns reflect a basic natural harmony manifested in the
inherent herding behavior of crowds. Elliott discovered that these crowd
behavior cycles appeared at every time scale and whilst they were repetitive
in structure they were not always repetitive in amplitude or the time taken
to form.
By this principle, bullish sentiment moves prices up in five moves of
alternating peaks and valleys, eventually pushing prices to a new high. This
is followed by three bearish moves pushing prices lower.
Based on his analysis, Gunn believes that gold has hit the bottom of its
recent down cycle and the price gains made by the metal over the past few
weeks are forming a new, substantial upward trend.
In addition, Gunn is relatively bearish on all major global stock indexes
including the S&P 500 and FTSE 100. In terms of sectors, the analysis is
significantly bearish on US motorcycle manufacturers, agricultural products,
and apparel retail. It is significantly bullish on no sector of US stocks.
Full article on Business
Insider
Gold Prices (LBMA)
13 April: USD 1,245.75, EUR 1,100.37 and GBP 875.33 per ounce
12 April: USD 1,259.20, EUR 1,102.15 and GBP 880.18 per ounce
11 April: USD 1,247.25, EUR 1,095.84 and GBP 878.96 per ounce
8 April: USD 1,235.00, EUR 1,085.18 and GBP 877.33 per ounce
7 April: USD 1,237.50, EUR 1,086.07 and GBP 879.70 per ounce
Silver Prices (LBMA)
13 April: USD 15.98, EUR 14.14 and GBP 11.21 per ounce
12 April: USD 15.96, EUR 13.98 and GBP 11.15 per ounce
11 April: USD 15.56, EUR 13.66 and GBP 10.93 per ounce
8 April: USD 15.16, EUR 13.34 and GBP 10.78 per ounce
7 April: USD 15.22, EUR 13.38 and GBP 10.81 per ounce
Gold News and Commentary
Silver Climbs to Five-Month High as Investors Pile Into ETFs (Bloomberg)
Gold steadies below 3-week high, silver hits 5-1/2-month high (Reuters)
Gold books best string of gains in nearly 2 months (Marketwatch)
U.S. runs $108 billion budget deficit in March, Treasury says (Marketwatch)
China’s yuan gold benchmark to launch with 18 members (Reuters)
IMF Warns of Global Stagnation as It Cuts Growth Outlook Again (Bloomberg)
Gold “will pick up a lot of steam”… If central banks exit market (Economic
Times)
Swiss banker whistleblower: CIA behind Panama Papers (CNBC)
Bank bail-ins are back, and they begin in Austria (Examiner)
Silver Surges To 8-Month Highs As Hedgers Unwind (Zero Hedge)
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